Expecting a baby? Congratulations! Better put plenty of money in your savings account. The estimated cost of raising a child from birth through age 17 is $233,610 — or as much as almost $14,000 annually, the Department of Agriculture says. That’s the average for a middle-income couple with two children. It’s a bit more expensive in urban parts of the country, and less so in rural areas. (cbsnews.com)
Exchange rates are never constant in the global market. They keep changing from time to time. In fact they are constantly changing every minute as viewed in the stock market graphs. The stock brokers and the foreign exchange experts always keep their eyes on the constant changes on the graphs on how the markets keep behaving. This allows them to know when to make purchases and sales of the money in order to change from one foreign currency to the other. The factors that affect the behavior of currencies in the international market mainly are the supply and demand at any given time. The factors that determine the supply and demand can be political stability in a country, the economic stability in a country and the security that exists within the borders of a particular country. [Read more…]
“Afraid you might be behind on saving for retirement? There’s one simple way to get ahead of pretty much everyone else.” said Katie Lobosco at CNN Money. Here are four things to ask yourself to make sure you’re on track in the new year:
- How much did I spend last year?
- Can I increase my future contributions?
- Did I max out my IRA last Year? There’s still time.
- Are my investments balanced?
About 80% of Americans surveyed by Voya Financial said they hadn’t taken the time to review or revise their retirement plan within the past year. So simply taking a look at how your 401(k) or IRA performed in 2016 will mean you’re already doing more than most Americans. (cnn.com)
Warren Buffett became a player in the investment game at the wee age of 11, eventually using cash he earned from his paper route to buy some farmland in his home state. As a high school sophomore, he also reaped the rewards of a booming pinball machine business. By the time Buffett was 15, he already had a net worth of about $6,000. According to the latest Forbes count, the so-called Oracle of Omaha is currently tipping the wealth scales at $73.1 billion. That’s good enough to put Buffett, who turns 87 this summer, at No. 3 on the U.S. rich list, behind Microsoft’s Bill Gates and Amazon’s Jeff Bezos. (marketwatch.com)
There is something about putting money into an investment that intrigues a lot of us. Perhaps it is because you can start from anywhere with any amount of money to become a good investor with great returns. Understand that you don’t just have to place your money in the stock market as there are countless ways to invest. All investment methods come with unique risks and benefits, and they all have varying interest rates and timelines. Here are some of the safest and most profitable ways to invest your money in 2017.
In any financial plan, bonds are core elements to investing in and growing wealth as they are types of investments where investors lend money to certain parties in exchange for variable or fixed interest. With the different options available, including treasury bonds, municipal bonds, savings bonds and commercial bonds, you must understand the best among them for your situation and the dangers presented by your preference. The price of each bond is equivalent to the amount lent to the entity, meaning that as an investor, you get your interest after loaning the money. Note that the higher the interest received, the higher the risk, so be careful when choosing the bond to invest in.
Real estate is high risk because its development and buying of land and private real estate funds come with possible financial perils. However, it is not as much risk as it may appear, given that it is a large market that can give high profits, depending on how you approach it. You can choose to rent out the property to businesses or tenants through buying and selling or capital appreciation. It is, in fact, a safer investment than most others because it is a physical asset that is always on demand. People are looking for business buildings, and others are looking for a place to call home every day, making real estate investment highly profitable. If you are reluctant on using your money to purchase a real estate, you can invest in a real estate investment trust.
If you are looking to invest in people and earn good interest, there is a new craze that is both reasonable and exciting and is known as peer-to-peer lending. This is the practice of lending to borrowers in an online platform where the goal is to bring both lenders and borrowers together. Like any other investment, be sure to choose notes that reflect your risk tolerance as some are riskier than others. After borrowing, the peers are expected to pay back the loan with a given interest rate, meaning the benefit of such lending is minimised risk as money is spread out to many borrowers. Instead of placing all your funds on one borrower who may delay the payment or fail to repay, the lending companies lend to many so as to compensate for possible losses.
From gold stocks to gold exchanges- traded funds, as an investor, you now have multiple options when it comes to investing in the precious metal. Have you ever wondered if it is worth it to invest in gold and the exact purpose of the metal in the market? The fact is that, although gold is no longer in the forefront of transactions, it is vital in the global economy, especially the international monetary fund and balance sheets of central banks. Regardless of whether you are focused on protecting your wealth or are simply worried about inflation, gold has proved to offer a diversifying component in many investors’ portfolios. It is ideally a major physical asset that holds real and great value, making it a perfect investment when handled correctly. It does not only come in the form of jewellery but can also be found in bullion bars and coins that can be stored safely in a bank vault or even at home.
Those above are some of the smartest ways to invest, and it is important that you make solid decisions that are based on the present investment opportunities. If you choose to invest in stocks, for instance, it is advisable to have a good look at brokers such as CMC markets to have a better understanding of what to embrace. Have basic knowledge of your preferred method before you begin and focus more on the lower risk investments if you are not sure.
It is a good idea if your employer doesn not match or if it does a “true-up” after the end of the year or with each payroll, according to Mike Piper on Oblivious Investor. In the case that your employer contribute a certain percentage of your compensation as long as you contributed an equal amount in that pay period, if you front-load your contribution, you actually end up missing out on part of the match. (obliviousinvestor.com)
You’d think striking it suddenly rich would be the ultimate ticket to freedom. Without money worries, the world would be your oyster. Perhaps you’d champion a worthy cause, or indulge a sporting passion, but work? Surely not. However, remaining gainfully employed after sudden wealth is more common than you’d think. After all, there are numerous high-profile billionaires who haven’t called it quits despite possessing the luxury to retire, including some of the world’s top chief executives, such as Amazon’s Jeff Bezos and Facebook’s Mark Zuckerberg. But it turns out, the suddenly rich who aren’t running companies are also loathe to quit, even though they have plenty of money. That could be, in part, because the link between salary and job satisfaction is very weak. According to a meta-analysis by University of Florida business school professor Timothy Judge and other researchers, there’s less than a 2% overlap between the two factors. In the long run, we derive job satisfaction from non-monetary sources, which include positive peer relationships, the ability to work on meaningful projects and even leadership opportunities. (bbc.com)
Darla Mercado writes on CNBC Personal Finance: “Investing in an effective and tax-efficient manner isn’t the No. 1 financial goal for most Americans. That’s the findings from a new report by BMO Wealth Management. The bank polled 1,018 adults online, asking them about their financial priorities and anxieties. When asked ‘What is the single financial priority that is most important to you?’ 31 percent — the largest share of participants — said debt reduction was their top financial goal.” (cnbc.com)
In February we shared the news about this couple with 13 kids on pace to retire early. Erica Johnston from The Washington Post interviewed and wrote in-depth about this family who is living debt free and still plans to retire early while sending 13 kids to college. Johnston described this family: ” Rob and Sam Fatzinger, lifelong residents of Bowie, Md., lead a single-income family in one of the country’s most expensive regions. Rob’s income never topped $50,000 until he was 40; he’s now 51 and earns just north of $100,000 as a software tester. They have 13 children. Which means they require things like a seven-bedroom house and a 15-passenger van. Four children have graduated from college, three are undergrads and six are on the runway. Yet they paid off their mortgage early four years ago. They have no debt — never have, besides mortgages. And Rob is on track to retire by 62. This family gets the gold medal for being frugal. This family is the Einstein of economical.” (washingtonpost.com)
The Wall Street Journey reported: “Whatever the world’s economic and market turbulence last year, one group has held up well: billionaires. The combined wealth of the world’s billionaires, defined as individuals with a net worth of $1 billion or above, increased by 5.4% to a record $7.7 trillion, according to Wealth-X’s 2015-2016 billionaire census. By comparison, the gross domestic product of the U.S. is around $17 trillion. The world’s billionaire population grew by 6.4% to 2,473 in 2015.” Overall, 87% of billionaires made the majority of their fortunes themselves. (wsj.com)
TheStreet compiled a list of the top 10 highest-paying jobs in America. You should follow a career in medicine, law and STEM if all you care about is money. Here’s the list for these high-paying jobs:
- Physician: $180,000 median base salary
- Lawyer: $144,500 median base salary
- Research & Development Manager: $142,120 median base salary
- Software Development Manager: $132,000 median base salary
- Pharmacist: $130,000 median base salary
- Strategy Manager: $130,000 median base salary
- Software Architect: $128,250 median base salary
- Integrated Circuit Design Engineer: $127,500 median base salary
- IT Manager: $120,000 median base salary
- Solutions Architect: $120,000 median base salary
Kobe Bryant, after 20 years in the league, retired as a legendary players. On Wednesday, Bryant penned an open letter to his 17-year-old self on The Players’ Tribune, with particular focus on personal finance and investment. “You need to figure out a way to invest in the future of your family and friends,” Bryant wrote. Bryant explained: “I said INVEST. I did not say GIVE. Purely giving material things to your siblings and friends may appear to be the right decision. You love them, and they were always there for you growing up, so it’s only right that they should share in your success and all that comes with it. So you buy them a car, a big house, pay all of their bills. You want them to live a beautiful, comfortable life, right? But the day will come when you realize that as much as you believed you were doing the right thing, you were actually holding them back. You will come to understand that you were taking care of them because it made YOU feel good, it made YOU happy to see them smiling and without a care in the world — and that was extremely selfish of you. While you were feeling satisfied with yourself, you were slowly eating away at their own dreams and ambitions. You were adding material things to their lives, but subtracting the most precious gifts of all: independence and growth.” (theplayerstribune.com)
Over the long term neither farmland nor housing has been a great place to invest money. Robert Shiller writes on New York Times: “Buy land: They’re not making it anymore. That often repeated adage sounds like good financial advice. But over the long run, it hasn’t been. Despite solid price increases over the last few years, land and homes have actually been disappointing investments.” He went on to show that over the century from 1915 to 2015 the real value of American farmland increased only 1.1 percent a year. With a growing population, that’s barely enough to keep per capita real land value unchanged. Real home prices rose even more slowly over the same period with an average of only 0.6 percent a year. To put this in perspective, the real gross domestic product in the United States grew an average of 3.2 percent a year from 1929 to 2015. That’s a much higher growth rate than for real estate. (nytimes.com)
Michael Simmons explained why you should follow the five-hour rule. By consistently investing an hour a day in deliberate learning on every weekday, Bill Gates, Warren Buffett, Mark Zuckerberg, and Benjamin Franklin achieve many great things. Simmons wrote: “At the age of 10, Benjamin Franklin left formal schooling to become an apprentice to his father. As a teenager, he showed no particular talent or aptitude aside from his love of books. When he died a little over half a century later, he was America’s most respected statesman, its most famous inventor, a prolific author, and a successful entrepreneur. What happened between these two points to cause such a meteoric rise? Underlying the answer to this question is a success strategy for life that we can all use, and increasingly must use. Throughout Ben Franklin’s adult life, he consistently invested roughly an hour a day in deliberate learning. I call this Franklin’s five-hour rule: one hour a day on every weekday.” (observer.com)
Millennials are set to become the first generation to earn less than their predecessors, new research suggests. The Resolution Foundation found that under-35s earned 8,000 pound ($10,600) less in their twenties than Generation X workers. If wages for millennials follow the same path as Generation X, average career earnings will be about 825,000 pound ($1.1m). That would make them the first generation to earn less than their predecessors over the course of their working lives. Research found that some of the pay squeeze was due to under-35s entering the job market as the recession hit, but it also concluded that generational pay progress had ground to a halt even before the financial crisis struck in 2007. (bbc.com)